Eurohold Bulgaria AD

Earnings Release • Nov 16, 2016

Realized sales in October 2016 by the companies in the group of Eurohold

EUROINS INSURANCE GROUP (EIG)

The insurance holding EUROINS INSURANCE GROUP registered a 44.7% growth in premiums (GWP) for October amounted to EUR 27.3 mm compared to EUR 18.9 mm for the same month of 2015. (Table 1.).

Table 1.
EIG	October
	(EUR'000)		Change (%)
	10'2016	10'2015
Euroins Bulgaria	5 909	5 126	15.3%
Motor Hull	945	1 380	-31.5%
Motor TPL	2 027	1 652	22.7%
Property	1 484	629	136.0%
Active reinsurance	412	925	-55.5%
Other	1 041	540	92.6%
Euroins Romania	18 693	12 765	46.4%
Motor Hull	112	168	-33.0%
Motor TPL	17 604	12 096	45.5%
Property	456	139	226.7%
Other	521	361	44.1%
Euroins Macedonia	670	648	3.5%
Motor Hull	39	65	-40.1%
Motor TPL	449	455	-1.4%
Property	108	37	193.4%
Other	74	90	-18.1%
Euroins Ukraine	1 949	-	-
Motor Hull	32	-	-
Motor TPL	-	-	-
Property	1 837	-	-
Other	80	-	-
Euroins Life	37	301	-87.6%
EIG TOTAL GWP	27 259	18 840	44.69%

Source: EIG

For the first ten months of 2016 the GWP of EUROINS INSURANCE GROUP registered 12.9% growth amounted to EUR 212.8 mm compared to EUR 188.5 mm for January-October 2015, according to preliminary data (Table 2.).

Euroins Bulgaria reported a decline in premiums in the first ten months by above 11.2%, which is the result of accounted in May'2015 EUR11.6 million from active reinsurance. If

you eliminate the above one-off effect of reinsurance, the direct insurance business of Euroins Bulgaria was increased by 15.8% for the first ten months of 2016.

Euroins Romania registered above 21.3% growth in premiums for the first ten months. Currently, the company focuses on quality and diversification of its insurance portfolio through detailed market segmentation, which significantly reduces the levels of risk taken. For the current year the goal of management is to keep the market position and to improve significantly the financial result.

For October the GWP of Euroins Ukraine amounted to EUR 1.9 million, mainly accumulated from Property insurance. Euroins (HDI) Ukraine is a part of the group of Euroins Insurance Group (EIG), after Germany-based Talanx Group transferred the 99% of shares of the Ukrainian company to EIG on 12th of August. Effectively from 30th of September, 2016, the name of the company was changed to Euroins Ukraine.

Table 2.

EIG January-October (YTD) (EUR'000) Change (%) 01-10'2016 01-10'2015 Euroins Bulgaria 44 227 49 801 -11.2% Motor Hull 9 521 9 134 4.2% Motor TPL 20 714 14 424 43.6% Property 3 517 4 376 -19.6% Active reinsurance 1 812 13 692 -86.8% Other 8 663 8 175 6.0% Euroins Romania 158 098 130 291 21.3% Motor Hull 1 096 1 346 -18.6% Motor TPL 151 049 123 976 21.8% Property 1 941 1 536 26.4% Other 4 012 3 433 16.8% Euroins Macedonia 7 250 7 431 -2.4% Motor Hull 593 606 -2.2% Motor TPL 4 833 4 881 -1.0% Property 723 627 15.3% Other 1 101 1 317 -16.4% Euroins Ukraine 2 473 - - Motor Hull 160 - - Motor TPL 141 - - Property 1 735 - - Other 436 - - Euroins Life 761 962 -20.9% EIG TOTAL GWP 212 809 188 485 12.91%

Source: EIG

AVTO UNION

The automotive holding AVTO UNION registered 16.4% growth with total of 298 sales of new PC and LCV for October, 2016 compared to256 units realized in October, 2015. The highest number of sales for the month was realized by Espace Auto (Renault, Dacia) with 144 units, followed by Star Motors (Mazda) with 51 units, Auto Italia (Alfa Romeo, Fiat, Lancia, Maserati) with 43 units, Bulvaria (Opel, Chevrolet) - 37 units and Nissan Sofia (Nissan) with 23 units. (Table 3.)

Table 3.
Avto Union	October
Company	Units	Units	Change (%)
	10'16	10'15
AUTO ITALIA ALFA ROMEО,FIAT, LANCIA, MASERATI	43	43	0.0%
NISSAN SOFIA	23	50	-54.0%
NISSAN
ESPACE AUTO	144	89	61.8%
RENAULT, DACIA
BULVARIA	37	24	54.2%
OPEL, CHEVROLET
STAR MOTORS	51	50	2.0%
MAZDA
TOTAL	298	256	16.4%
			Source: Avto Union

For the first ten months of 2016 the automotive division of Eurohold registered 2.2% growth with 3117 sales of new PC and LCV compared to 3049 units for January-October 2015, according to preliminary data (Table 4.).

Table 4.
Avto Union	January-October (YTD)
Company	Units	Units	Change (%)
	01-10'16	01-10'15
AUTO ITALIA	385	308	25.0%
ALFA ROMEО,FIAT, LANCIA, MASERATI
NISSAN SOFIA	289	354	-18.4%
NISSAN
ESPACE AUTO	1633	1520	7.4%
RENAULT, DACIA
BULVARIA	249	395	-37.0%
OPEL, CHEVROLET
STAR MOTORS	561	472	18.9%
MAZDA
TOTAL	3117	3049	2.2%

Source: Avto Union